Gene Peroni from Claymore just made an interesting comment about oil possibly going back to the mid to low $60s which he thinks would give a great buying opportunity.
Oil in that range would be a very positive development for US markets if it could go there an stay there for a few months or longer. Of course it could trade there but I don't think it could stay there.
With oil at $62 it would still be great times for oil stocks but it would also, I believe, give a boost to sentiment for the consumer. Maybe with oil at that level, gas might drop to $2.50 (it is $2.92 at the Prescott Costco)? I think that could ease concerns considerably.
Oil stocks might initially re-price on a move down to $62 but earnings would be fantastic with that kind of average price for crude.
Wikinvest Wire
2 comments:
Roger:
I am not sure about oil going down stocks going up- although it sounds like it should be good for the consumer, if you look at the charts the prices between crude/oil stocks/spx are very well correlated not negatively correlated
Lower oil, means lowers prices on all sorts of goods. Therefore lower oil == ++ Real income.
You know that Eugene Peroni publishes a weekly commentary on Claymore's web site:
http://www.claymore.com/research/research.aspx
I personally thinks he writes like an astrologer, but he's still fun to read.
Post a Comment